When it comes to purchasing insurance, consumers have several options. They can buy directly from an insurance company, use an online comparison site, or work with an independent insurance agent or broker. While these terms are often used interchangeably, there are important differences between independent insurance agents and insurance brokers.
What is an Independent Insurance Agent?
An independent insurance agent is an insurance professional who works with multiple insurance companies to provide a variety of insurance products to consumers. Independent agents are not employees of any one insurance company; instead, they represent several different insurance carriers and are able to offer a wide range of insurance products and services to their clients.
What is an Insurance Broker?
An insurance broker is an insurance professional who works on behalf of their clients to find and purchase insurance products. Brokers do not work for any one insurance company; instead, they work with several different insurance carriers to find the best insurance products for their clients.
How are Independent Agents and Brokers Different?
While both independent agents and brokers offer similar services, there are important differences between the two. One of the biggest differences is the way they are compensated.
Which One Should You Choose?
So, which one should you choose? Ultimately, the decision comes down to your personal preferences and needs. If you value independence and a wider range of insurance products, an independent agent may be the better choice for you.
The Bottom Line
While independent insurance agents and insurance brokers offer similar services, there are important differences between the two. Independent agents offer more independence and a wider range of insurance products, while brokers may be more focused on finding the best price for their clients.
